[kictanet] For those who think Safaricom is dominant think again..and think regional :)

Kevin Kamonye kevin.kamonye at gmail.com
Mon Jan 29 11:34:36 EAT 2018


I am usually very wary of some of these talking head analysts and their
opinions.

Safaricom is leagues ahead of Sonatel due to the underlying economic
factors that differentiate Kenya and Senegal combined together with Guinea,
Mali, Sierra Leone and Bissau).

*Country / 2016 GDP / 2016 Growth Rate*

*Kenya* 70.53 Billion USD ; 4.4%

*Senegal* 14.77 Billion USD; 6.6%
*Guinea* 6.299 Billion USD ; 5.2%
*Mali* 14.05 Billion USD ; 4.8%
*Sierra Leone* 3.669 Billion USD ; 6.1%
*Bissau* 1.13 Billion USD ; 5.5%

*Sonatel host countries total stats*
Total GDP 40 Billion USD
Total Population 52M
Average Growth 5.7%

When we look at market penetration and market share, Sonatel already has
some very high numbers - as per their 2016 reports.
http://www.sonatel.com/wp-content/uploads/2017/02/Sonatel_2016_financial_results_EN.pdf

​As for the reports that indicate that Safaricom will suffer losses due to
more and MPESA transactions being to business numbers - rubbish.

The biggest growth potential of African economies is in moving the informal
sector into the scope of the tax administration. By enabling this,
Safaricom is laying down the foundation for its own strong future growth.

Regards,

Kevin

On 29 January 2018 at 08:39, Ali Hussein via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Listers
>
> I’ve always advocated for Kenyan Companies looking beyond the country to
> Africa at least. Here’s an interesting story of Sonatel, the Senegalese
> Telco that seems to be making waves in the investment circles. A snippet of
> the story below:-
>
> For Sonatel, there is an integrated regulatory and economic environment as
> well as a regional presence and availability of other Orange Group
> subsidiaries with which to have direct partnerships for purposes of
> remittances in SSA.
>
> It also notes Safaricom is increasingly doing more transactions on M-Pesa
> that relate to businesses as opposed to withdrawals by individuals.
>
> “We expect revenues to suffer as business transactions gain traction at a
> lower transaction charge than the declining withdrawals,” said Exotix.
>
> Read on:-
>
>
> https://www.businessdailyafrica.com/markets/marketnews/Exotix-
> tips-foreigners-to-favour-firm-over-Safaricom/3815534-
> 4282002-f8gnyuz/index.html?utm_source=traqli&utm_medium=
> email&utm_campaign=bdafrica_newsletter
>
>
> *Ali Hussein*
> *Principal*
> *Hussein & Associates*
> +254 0713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim
>
> "We are what we repeatedly do. Excellence, therefore, is not an act but a
> habit."  ~ Aristotle
>
>
> Sent from my iPad
>
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